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tv   Fast Money  CNBC  July 27, 2017 5:00pm-6:00pm EDT

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general a tilt has been to the down side. yet as a whole the market has held together. >> and merk had a good day on an upgrade. b biotech and energy. >> we're getting away from the cyclicals a little bit. >> it's going to be a busy day fast money begins right now. >> fast money does start right now live from the nasdaq market cite overlooking new york's time square our traders on the desk are tim seymour, steve, dan nathan and guy adami. on fast the man that moves markets strikes again. marko kolanovic out with a new note that spooked investors and sent stocks reeling. what is keeping him up at night. plus transports tanking down 3%. having the worst day in more than a year. could it be a warning sign for the market the traders will weigh in and we have a huge night of earnings.
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amazon, intel and starbucks just three of the big names reporting in the last few moments and we have a full team covering all of that she is on deck to monitor the amazon call that starts in 30 minutes. josh lipton in san francisco listening to the intel call and suzanne lee back at headquaters on the starbucks call. we'll check in with everyone at the hour we'll start with amazon. the last of the faang stocks to report earnings. sinking after missing estimates by more than a buck. the stock is still up 36% this year so did amazon simply run too far too fast and do you buy the dip or is this the start of a bigger sell off? >> it would be disingenuous to say i saw this coming because i didn't across the board we were bullish on amazon and i remain so but the biggest story is not the epa miss, revenue beat, guidance for the next quarter, revenue is ahead of schedule. what disappointed me and disappointed the street though is operating margins came in
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about half of what the street is expecting. the story for the last couple of quarters has been margin improvement. this is clearly a couple of steps back that coupled with the fact that he had a big reversal on things that we'll talk about later now you're seth up for a google type situation where you see weakness in the name. >> they are an investment cycle. they spend money like drunken sailors. sometimes the market says it's okay sometimes the market says it's not. >> here's that situation right the stock ran about 10 or 12% in the last two weeks off of lows from earlier in the month so when you think about what is in the number here or what's in the stock as you have this, most people would be pretty happy with the fact that it was 11% of the total. part of that was the fact that they missed their operating profit in that division by 85 million bucks which isn't a huge amount on a $1 billion number. 4.1 billion in sales in that unit but what did we learn from
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microsoft last week? they're gaining some ground. so like this is going to be a more competitive thing aws grew 42% year over year. was down sequentially and i was a significant deceleration and that's to be expected. >> they cut prices in may by 7% so we knew there was going to be margin pressure and if you look at aws, that to me has been the marginal difference where people have been able to say everyone know what is amazon is doing in retail and you can put evaluation on it somewhere in the cloud is where people have been giving them a pass so you talk about the cfos on the tape saying our video content will continue to increase sequentially. ghoe they're going to spend whatever they can to dominate this space. prime to support prime and take it to this next level whether it's 100 million or 200 million this company has to spend. >> it's on sale for $33 less than before. do you buy it here
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>> no, the stock is up 40% year to date. to dan's point it ran up along with everything else the 50 day moving average, 994 i don't think there's a rush in to buy this stock. they didn't want to turn them on right now it's a cycle right now. >> all of these faangs ran up into the print facebook did. >> alphabet did and alphabet sold off so was it netflix after the print it was up 10% so there's things you doubt and things you don't doubt amazon is in the doubting camp is it still bright ahead yes. >> do you agree to wait? >> you have to digest a little bit. we had two massive announcements. $14 billion bid for a bricks and mortar super market. they did a deal with nike that's going to be a blockbuster thing. how many echo devices did they sell i'm not a bull on this story i'm a bull on the story but not a bull on the stock. that's important to remember
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everything they're doing on the strategic front is great for us as consumers they probably have 80 million consumers in the u.s. that are prime customers and sold more voice devices. they're going to put that in front of you before google does or am does. >> do you feel like you missed amazon, it's up 40% but it's a $1 t $1,000 stock it's $155 name that's the way you play this. >> what does that have to do with it? >> for me i can buy more and when it's up 75% it's a big difference versus up 39%. >> i love alibaba and if i'm looking for relative growth that's it. i don't think amazon's issue is the dollar price in the stock. >> no, right now one is up 39% one is up 75% and if you think india is going to be a great story for amazon, china is the growth story for alibaba and amazon isn't going to have an easy time in china.
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>> the two things that dan is pointing out, he's not necessarily in love with the stock valuation. think about what happened in transports and about what happened in retail we have a markets conversation coming up but don't think that a lot of great news, the transportation sector, ups and fed ex are sweating over amazon as being the next essentially predator we saw that retail stocks are up 7% off of the lows that were hit on prime day how much good news can you bake into one stock. >> from a valuation standpoint that you bring up, in our lifetimes, is amazon going to have a valuation that makes everyone comfortable probably not when is the valuation going to get to a point where everybody bias the stock and doesn't mention the valuation? >> it's going to be tough and relative value in the space there's other places to go but guy said this, it would be disingenuous to say we have been pushing back on amazon have to say, $300 ago i thought
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it was too expensive but a lot has happened in the business model and a lot has happened in the space. we know amazon is in the driver's seat. >> i just felt, i have been bullish but the only reason why i backed off lately is because i don't think he has a reason to turn on the spiggot right now. it's done the work for him right now, no reason to beat the drum again. >> he doesn't care either. it's up to wall street to get on his page he's not going to get on their page. >> oh he cares when this stock doesn't perform and he thinks everyone is betting against it he does something to work on the earnings he pulls back on investing and investment cyclel and shows eps. >> as big a story as earnings, the trading activity during the intraday was as equally big a story, in my opinion just to drill down here, amazon traded over 10 million shares today. typically trades about 3
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made an all time high today. had a huge reversal on the back of your show that we'll talk about at noon. you'll have armchair technicians which i fancy myself to be talk about the potential for an island reversal and all kinds of things so steve's level of 994 is not that far away quite frankly. >> i'll give you the whole couch. think about facebook, they had great numbers. maybe amazon's numbers aren't as good but yesterday's was going to give facebook the benefit of the doubt. >> for all things amazon, gene mon munster joins us as we wait for the talk there is the phone and gene. >> one metric that i don't remember you talking about was 27%. that's up from 24% last quarter. so let me put this into perspective.
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a leader in market share e-commerce they're accelerating their growth and they're accelerating the pace of their market share this is a trifecta of a lot of good things happening. it's a concern that they'll continue to spend like drunken sailers. i think they're sending like a company that wants to take over a lot of industries. there are three industries that amazon is going after that are secular growth e-commerce is 10% of the bottom line today cloud 15% of business is done in the cloud and if you think about video content, 10% of video spending is done online verses the air so this is not a valuation type of a company. i'm very encouraged by these results. going to be tuned into what they're going to say obviously on the call but there's a lot to be positive here. >> why is the stock down $34 now? >> because operating guidance for the september quarter was
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for loss of 350 million in operating income an the students at a positive 930 and that's fears of investors they had back in 2014 when they went into an investment cycle and the stock was down 25% in a year that's why the stock is down it had a run plus you start stoking the fierce and at the end of the day if they're spending and the spending is resulting in a lot of positive things in the business. >> the risking know is that people will now start to rethink faang as a group as others look at the faangs as a group and the run they had why not do what traders have said and wait. if you think the space itself is going to have a little bit of a come down why not wait >> i think you're getting cute fluctuates in the market might cause that but goi back to the
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three areas they're disrupting they're disrupting that at an accelerating pace. i like to think about big changes that will come and amazon has three positions within that. >> you talked about what's going to happen in the third quarter explain to me if you can why were operating margins 1.7% when the street is closer to 3%? well spending result youed in hr unit growth. the exact details, they'll probably give to us on the call. could be from lead generation and advertising prime, buying more content for prime it's hard to see exactly what drove that but again gi go back to the e-commerce piece. that's rock solid. well below what microsoft's
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business grew at but that's a quarter of the size. we'll get more details on the call. >> we'll see you back in a little bit grab the phone and we'll jump back to you as needed. does he sway you >> i'm the least bullish on the stock for awhile but let me tell you one thing have not mentioned for 2017, the stock evaluation is a listen not to own it. you asked will it ever grow into that valuation and it may never it may be a very special stock for a long time. the most important point is that they are spending to grab units. they're trying to grab more mind share from their consumers and everything they can to do it and he also said that only 10% of total retail sales were online when you think about it these guys are grabbing half of $1 of every two of growth growing online we have a $5.2 trillion in the
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u.s. this story has legs so you're going to look back and say we're spending a lot in q-2, 2017. that makes perfect sense to me in facebook, in google was so euphoric that you couldn't find anybody that wanted to sell him and that's one of the reasons why you see some some disectionf all of the stocks. >> if you saw that reversal on amazon and reversal on facebook if you look at a chart during the same period of time it was inverse relationship you need to see faang week let's see if it lasts longer than a day. >> coming up, check out intel
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jum jumping after hours. the latest details next. plus, there he is now, the man that moves markets. >> moving himself. >> he'll be here to talk about his note that had all of wall street talking today just a moment. and twitter getting crushed today after the company -- one of the traders bought the stock this morning ey'll tell you who it is and why th're banking on a turn around y playing air guitar. the baby's room won't build itself. and her paw won't heal on its own. we're all working forward to something. synchrony financial can help your customers make it happen sooner. so she can plug into her dreams... and they'll have a new addition for their new addition. whatever you're working forward to, even if it's chasing squirrels, synchrony financial can help you get there.
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an outstanding quarter here with the data center group up 9% to $4.4 billion. strong demand from the cloud giants the service providers. enterprise weaker down 11% reaffirmed that forecast he gave for the business unit.
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chips for pc up better than expected he said intel keeps driving the evolution of the pc experience several months earlier than expected now going to be a leader in that $70 billion autonomous driving market intel sees competition out there but we are ready for it. scott back to you. >> thank you so stock, you know. >> i like it i like it, i like it this stock is down underperforming the most important piece of news that i
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got is that this is going to close early. the other piece of news is that the internet of things group was up 26% year over year. that was a $17 billion deal. they did two years ago we talked about it so these guys are not going to miss the next seeing seeingel -- cycle. >> i respect it. trade is 12 times earnings >> what do you not like about it >> the presumption that these guys because they made a couple of acquisitions is going to make up for the past where they missed the boat. i like intel and i'm long the stock and i appreciate your approach which is i think they'll be in the places they need to be -- >> do you? >> i do. >> do you? >> ultimately you are giving them the benefit of the doubt in an area that they don't deserve it and data senter is the one exciting part of their growth
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model. over 30 plus and they'll continue to grow that. internet of things is a cool area but they're not there so if you think about where the cutting edge chips and companies we talk about all the time on the show. >> it's the first inning of the game if you're a met fan you can argue the season is over i look at the valuation relative to where the stock has been. this say much more sensible long-term investment but a lot of faith being put in them being able to compete on the high level. >> $38 was the level back in the end of 2014 you're betting there's going to be earnings growth they haven't seen over the last two years but until you
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start seeing measurable eps growth it's dead in the water here at 36 that's the worst session in more than a year. ups down 4% on its outlook fed ex as well southwest air lines down 15% off earnings united down 3. what's going on? >> you haven't seen a rosy picture out of these guys. >> how do you know i wasn't
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watching. >> i'll bet you whatever you have in your pocket you weren't watching. >> i might have been hosting. >> the transports were in trouble he turned out to be white. i'll say this, now getting back to that 160 level we talked about for quite sometime that's your line in the sand in terms of the transports. >> bottom line here is the airlines if you look at the valuations they reported two weeks ago. they're a much more disciplined play the transports do have trouble here you're buying airlines on weakness as i have. >> still ahead, amazon sinking after hours. we're going to hear the latest about what they say the street is missing about the report. first in business worldwide. in the meantime here's what else is coming up on fast >> it looks like nothing can stop this market but a top strategist says there's one thing keeping him up at night.
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he'll be here to explain plus. >> where did everybody go? >> that's what twitter shareholders are wondering after a quarter with zero user growth but one trader says the stock is a reing scambuy despite the sell off. much more fast money after the break.
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where to get in... where to get out.
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if only the signs were as obvious when you trade. fidelity's active trader pro can help you find smarter entry and exit points and can help protect your potential profits. fidelity -- where smarter investors will always be. following the earnings report. we have full coverage of the stocks the conference call is about to get underway any minute. susan lee back at hq listening in on starbucks we'll bring you the headlines. better moving those stocks later
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on in the show but first we start with narcotics opening day at record highs before a big midday reversal let's get to bob for those details. >> there's not a lot of interest in bidding up the market in these prices they can cascade into larger drops. it always starts with the lee leaders. this time it moved into faang stocks like apple and then bio tech names like celgene for example. then secondary leadership like materials that could have done well this month. moving on is the relative strength index it charged the momentum of an index or stock for a short
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period of time that's a scale of 1 to 100 so a reading above 70 is considered overbought and oversold. at the open the nasdaq composite. i have never seen this reading in 20 years on a major index 99.3 out of 100. i'm not sure if that's a historic high but a reading of 99.3 is absurdly overbought. and in the past they usually turn back. i'm not trying to turn anybody into a technical analyst i'm well aware a t lot of our viewers have the looking at technical analysis but the markets have gone nowhere but straight up for nearly three weeks and in this case technical talk is a very useful way to
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illustrate you. >> well a man that moves markets strikes again as some investors say his note is partly what spooked investors. jp morgan's global head of quantitative strategies. joins us now good to see you again. he comments on that about the time the note comes out as well. questioning the same thing whether people are too complacent or volatility is too low and it's going to end badly as a result. >> we should note today around 12:30 and basically it will most likely put in lows now this morning we think it poses a
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risk to markets and why the risk is there, because there's a number of strategies and determine how much it is and therapy. but they have a lot of things in common which is basically that they rely on their ability to sell the market and cut the loss on time. that order becomes bigger. it's the biggest loss. and also the strike gets closer and closer to markets. and fundamentals are healthy when you look at earnings season right now we forecast 132 dollars. that's up from last year and we
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have to say basically that global is better and 4% only last month so that's a boost to earnings and there's finally this promise of potential tax reform so one side fundamentals are healthy. and i talked about volatility. why volatility is risky and why it's at a turning point right now. the second one is central banks and central banks basically there's a balance sheet and size of the balance sheet which is right now at a record level and it's about to get smaller. >> i want to go into this issue of volatility or lack there of and i want you to listen to what robert told us at noon today
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volatility was pretty low. it's surprising to many people what triggered that crash and it's nothing the crash kind of triggered itself. >> to be clear he's not saying that we're on the precipice of another '29 style crash but his point doesn't sound all that far away from the types of things that you're worried about. >> it's basically the same point. i mentioned a number of these strategies that have this, i call it 1987 type feature. volatility gets low and they all get levered and something triggers it and volatility starts going higher and it's hard to stop if you look at the cycles of volatility in '93 or 94 and
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2001 >> overnight the european, basically works hand in hand with draghi. we don't see inflation and we should get moving faster this goes back to three weeks ago. that to me is what drives off. >> absolutely. that's why we're saying, market did sell off today but this is thing of today this is probably something that gets triggered by one of the central banks. we have ecb in september so september 20th, 21st and september 7th. we also have a seasonal 8% you. >> we're thinking about what sectors will be the leadership group attend of the year what's your thought on where you should be investing in the market
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>> so we like financials and health care and energy those are our sectors and our underweight sectors are consumer staples and consumer discretionary and the rational behind that is that we are likely to stay in this growth where value may keep on outperforming sort of financials and still have a number of good things going, working in their favor and sort of more expensive names like samtaples, low volatility stocks or high quality stocks. >> what's the conviction on energy >> it's, you know, it's a bit of a contrarian now speculators are short. dollar had weakened quite a bit. it doesn't -- it's not reflected now. >> thank you for being here. >> yeah, the other side of that
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coin is at an all time high. they don't buy them for protection but to correct premium. that's dangerous and i don't think you can answer it either when or how that ends. >> i'm guess a lot of folks look at their screens and saw that spike and said i'm not doing anything and actually that was of course the right thing to do because every time we had one of these, june 9th. what did you do on that day? if you did anything with you your disappointed. his 40 page memo had a lot of people talk. >> his whole point was better to be early than too late i'd rather have the risk of missing out on some of the gains
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that could be left and there could be a bunch of gains left and be too late when it's too late to get out. >> that's compounded by the fact that there's a lot of people that did miss. there's a lot of money piling into the market now that has miss which had will exacerbate the things they have done a good job. bottom line is financials are going to be best defended if the central banks are moving. >> twitter tanking 14% today after the company report 0 user growth last quarter but dan nathan says now could be the time to buy. he's going to tell us what has him so bullish plus, amazon and starbucks are on the move in the after hours we'll hear from the top executives at both of ose th companies and what's driving the stocks tonight much more fast money straight ahead.
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[car tires screech] [bell rings]
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initially is up 5% and now we're down 4% in global sales comparisons missing again in the quarter. concern about the global retail environment and that's why starbucks and it's ceo are expressing concern for the rest of the year. >> in the quarters ahead,
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today's challenging retail and consumer environments compounded by head winds related to the retail disruption underway has us taking a slightly more cautious view as we enter q-4. >> with a more cautious tone starbucks is shedding assets that includes closures of all 379 stores remember starbucks bought it back in 2012 for $620 million. now there was a bright spot in this report card china sales higher than anticipated in the quarter they bought the other half of the china joint venture today. largest spend in the history starbucks is building 500 store ace year in the country. mobile has been a headache for starbucks or at least in the first two quarters serve as bottlenecks in the back end failing to keep up with mobile orders payments increasing to 30% of all transactions
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both gaining from the previous quarter. >> thank you so much what do you make of this stock initially pops like 3% and then it goes into the tank on the cautious comments from the executives. >> cautious comments, people look at comps. >> u.s. comps are 5%. >> overall comps missed, the street was looking for a certain number i saw they missed by almost 1% so overall comps were a miss and then couple that with the fact that people are starting to look at starbucks valuation wise and say maybe it doesn't deserve the premium valuation it's gotten. on top of that 64.5 going back from the all time high in 2015 and maybe it's topped out in the short-term and we had this discussion i think it holds 54.5 which is the low last year. >> we have seen this with starbucks so many times and it's
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an opportunity to buy the stock. we'll go with china. 1,300 stores and they're partnering up. they have shed this unit that doesn't make any sense bottom line is if you think about what is going on with mcdonald's and the rest of the fast food space, bigger getting bigger scale means something. this is a joke that's not a big deal. that's not something that they can't overcome. >> doesn't this suggest though -- >> valuation has been there for a long time. >> the u.s. comps at 5 the mobile payments 30% of all transactions opportunity that suggest they have kind of figured out mobile after all of the headaches they had. >> they're smoother and their online and royalty program has a lot more value than people are giving it credit for and if you want to trade any of these guys at a premium starbucks deserves a significant premium because of the multiple channels they operate in. >> you can argue every time you bet against it and see the stock
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sell off it does rally back but i'd rather put more focus on technicals you could make the case that this is a head and shoulders pattern or triangle of death this to me looks like it wants to break down. the ceo will be on tomorrow morning, the new ceo that will be an interesting interview to hear his tone with the technology issue mobile payments being able to execute which i know jim cramer is going to put his feet to the fire on has been the most significant issue. >> this guys is an operations guru that's how he made his mark. he's responsible for the international growth when i hear them talking about disruption in the consumer space, frankly i find that puzzling because i think these guys dominate a space that's not really -- >> i think we all agree that these guys are first movers in using technology to streamline
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orgd a ordering and it goes back to that conversation with amazon. do you buy it here down 5% from the highs. this is a story. they just guided down. they just told you that things are taking longer to make this transition the stock was at 64 a month ago and now it's at 57 and the low for march was 54 it's just a rush to pay 28 times for something like this. get a story like this where you an intermediate to longer term and get it coming toward you rather than bidding it up like people were coming in may. >> tomorrow morning, 9:00 a.m. on squawk on the street t starbucks ceo kevin johnson will be with the gang in the morning to give him reaction to the quarter. twitter is tanking today poegs it's worst session in nearly a year now is the time to buy the stock. he's going to tell us why. plus amazon is sinking more than
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2% following it's own earnings miss the conference call underway as we speak fast money friend gene munster has the red phone in hand. there he is. there is the phone he' ge lliv his thoughts and why he's buying the dip. more fast money right after this your joints... or your digestion... so why wouldn't you take something for the most important part of you... your brain. with an ingredient originally found in jellyfish, prevagen is now the number one selling brain health supplement in drug stores nationwide. prevagen. the name to remember. [music playing] across the country, we walk. carrying flowers that signify why we want to end alzheimer's disease. but what if, one day, there was a white flower for alzheimer's first survivor?
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>> twitter is having it's worst day in nearly a year that stock tanking more than 14% after reporting 0, that's right, 0 new monthly users in it's second quarter but dan you actually bought twitter today. >> yeah. i actually got a little inspiration from the star of your program the halftime report the reformed broker. the stock is down 10% and i'm looking at this list on twitter he's using and he listed all the things the company could start charging for i use this thing, i'm not an active tweeter but i use it. this company is starting to get their act together and thinking about the fact that they're not going to be growing users but they're going to figure out how to squeeze dollars out of the users rather than through advertisers using users as the product but coming back to their power users. when you think about this last year and the political cycle we
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have been in the way entertainers and sports people use this medium there's things they could charge for that's going to play itself out over the year. >> and then the maus but when you see twitter, when you chart twitter, besides today, the demise of twitter and you look at snap, it comes out of one and goes into another. if you see snap under the gun, everyone is worried about head winds, everyone is worried about instagram. >> it's not going to come off of snap and go into twitter it's going to come off of snap and go into facebook. >> all of them. >> do you think it's going to go into twitter look at that chart it went some place. >> it got back up to 20 bucks because people thought there would be m&a again. >> it's not the guys buying facebook. >> the stock is down 23% in three days and you have it tested over and over again. >> i'm not saying pound the table and go into full position
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i bought some at 17. i have an order for the same amount. >> have the same amount at 15. i think you're right there's a lot of valuation >> dan are you talking about these guys monetizing by actually in some type of a subscription way or are you talking about advertising? that's what everyone else is doi doing. >> i was sit in bed and it was like all of a sudden i saw live video streaming from, you know, financial news network and then a tab right next to it said live market commentary and it's starting to verticalize the tweets they're not making a lot of noise about it. >> that's so obvious right >> facebook was up 3%. gained $15 billion in market cap. twitters enterprise value is 10
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billion so if you get the stock back toward the mid teens where you think it bottoms out you have a 7 or $8 billion enterprise value company and i think is a very very scarce social property. there's other uses for it other than just being social network. >> i'm long the stock and i didn't need to hear about that time early in the morning. >> may i make a quick point. >> how do you know it wasn't late at night. >> it was late at night. >> i dare say on the quarter they reported this morning the stock would have been up 5% and not down the amount it moved today. >> i would actually sell, i would sell down side puts and buy upside calls and do it for even money worst case scenario you sold the december 15 put and use the proceeds to buy a call, worst case you get active $15. >> what else can i do for you. >> tomorrow, 5:30.
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>> explain intel again. >> no, a segment here. let's talk snap. >> tomorrow is the last day to trade snap the options market is a pretty big move dan, beat it. >> here's the deal. >> this company has two events over the next two weeks. option trader is going to be focused on this. if you look out to this lockup expiration who knows if investors sell the stock it's obviously down from $29 it closed below 14% today. the options market is pricing between now and next friday's close. that's going to incorporate the volatility around the lockup and then august 10th that's the second quarter as a publicly trade company
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this could go the other way next week if investors choose not to sell. >> all right full show tomorrow at 5:30 p.m. eastern time more news on starbucks coming up after hours and susan lee has that back in the newsroom. the revenue growth will come in at the low end of a previous range of 8 to 10% and when it comes attorneyin comes into profits that's below the 58 cent estimate that analysts were looking for. back to you. >> even more reason why you have to check out that interview tomorrow morning still ahead amazon sinking after hours following it's own earnings miss. we're going to bring you the
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i was trying to listen to the last minute. there's lots to get to on the earnings call but questions on amazon's guidance going into the third quarter and what the whole
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foods acquisition means for the bigger picture here's what the cfo said about their grocery strategy. >> we're experimenting with a number of the formats from fiscal pick up points on amazon go to online ordering and delivery to your door through prime mail and amazon fresh and we'll see how customers respond. we like the response we have seen so far. we think all of those are valuable services. >> now he ended by saying they were excited to add whole foods to their grocery offerings and as i was getting on tv he started to talk about cloud as well some concerns around the operating margins and it's decelerating and when you compare that to microsoft's last quarter, nearly 100% growth some analysts are suggesting a better position and big corporate customers but scott as you said amazon still spends like drunk
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sailors. that was no different this quarter. >> thank you so much for the update there let's go back to gene munster. what is your take away thus far from what you heard on the phone? >> well, more good than bad from the call 6 of the 8 questions had something to do with earnings. these are multitiered questions. analysts are keying in on the earnings piece the good piece is that the guidance in september was negatively impacted by then expanding their ability to fulfill by 30% so investors can rest easy that this is not some structural change in terms of the pace of how amazon is investing. i would throw one small caveat on that. whole foods is not in the guidance it's probably going to be an investment phase around whole foods so analysts need to start to take that into consideration but the net of this they did a good job of explaining why the
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margins came down. >> so you give the quarter what grade then >> i give it an a minus and the reason is that the unit growth accelerating aws in line with with last quarter and lastly is that the areas that they're spending in makes perfect sense that they're spending to build out content and fulfillment and that's the right thing for the long-term. >> thanks for getting on the call and bringing us the headlines as well. let's bring all of this back what's the need to rush into a stock that's performed so aggressively well. >> it's not a structural change how does he know that just yet fulfillment, whole foods, i don't think we have the answers. >> maybe people are questioning what's the need to rush out of it what's the need to rush out of it >> it's up 40% the stock earlier in the month was at 950
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in june it was 950 the stock was up 14% and can we take it easy on drunk sailors. these guys -- that was the theme of the show. >> i think it's going to light up >> if you think about amazon international, india, content is weighing on the stock and at times they care about this and at times they don't. right now they're investing in their business we spent all of this time while they try to take over whole foods and everything thinking about the other industries they're going to dominate. their core business isn't going to be as high margin as it was last quarter. >> these concerns about as you're with microsoft, aws, amazon, real competition fierce >> the cloud space will be commoditized at some point it will be i'll say this real quick i gave google or alphabet a a
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i give this a b plus so you can see that 950 that dan just flagged. >> an interesting session tomorrow to say the least given the bigger picture sessions. >> thanks for joining us scott. >> been a pleasure. >> you can catch fast money again 5:00 p.m. 5:00 p.m. eastern tomorrow "options action" right after that "mad money" with jim cramer starts right now. my mission is simple to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cramerica other people want to make friends, i'm just trying to make you some money my job is not just to entertain you, but educate you, but teach you. call me, or tweet me @jimcramer. look, it happens stocks rally too far, we get a reversal the market starts hating everythingt ve

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